There are three questions related to Chapters 4~6.If you provide some numbers to support your opinion, cite the source of reference.

1. Assume that a salesman learned the price elasticity of demand for his products is 2.0.How many percent will increase in the total sales(revenue)if he cuts the price by10%?Show your calculation process.

2. If the short-run total cost function for a firm is

TC = 3,000+10Q,

please calculate

1. the average total cost (ATC) when the output Q=10,
2. the marginal cost (MC) for the 10^thunit of output, and
3. the fixed cost in the short-run.

3. If you were a taxi driver, the daily revenue and costs are as the following:

Revenue: $240

Variable costs (gas, your labor...): $180

Mortgage payment for car: $50

License Fee: $40

For profit-maximization, will you operate your taxi business today? What is the minimum daily revenue to keep the operation in the short-run? What is the minimum daily revenue to keep the operation in the long-run? Please show the calculation.

The chosen student should post answers inoneparagraph for each question.